Economist Peter Schiff, co-founder of Echelon Wealth Partners, thinks that the decline of Elon Musk-led Space Exploration Technologies Corp. (NASDAQ:SPCX) could signal the end of the artificial intelligence (AI) boom.
Peter Schiff Chimes in on SpaceX Falling Close to IPO Price
Schiff took to the social media platform X on Monday, weighing in on SpaceX’s recent decline. He outlined how the stock had broken “below $137,” which was “less than $2 above its IPO price and nearly 40% below its post-IPO high” of approximately $225/share.
“Does this mean the bloom is coming off the AI rose?” Schiff asked in the post. He also said that if the AI boom were to slow down, “higher inflation, rising interest rates, and war will put substantial downward pressure on an overpriced U.S. stock market.”
Ross Gerber Is Not Surprised By SpaceX Decline
Investor Ross Gerber, who is the co-founder of investment firm Gerber Kawasaki, also shared his take on Monday via a post on X. “SpaceX now trading very close to the IPO price… not surprising really,” the investor said in the post.
Gary Black’s Earlier Comments
The comments come as Investor Gary Black of The Future Fund LLC also shared that SpaceX’s decline could continue, taking the stock below its IPO price of $135/share when the share lock-up period stipulated by the IPO terms ends in August.
The end of the lock-up period would allow insiders, excluding Musk and other majority shareholders, to sell up to 20% of the shares owned by them following the commercial space flight giant’s second-quarter earnings call.
According to Benzinga Edge Rankings, SpaceX fails to provide a favorable price trend in the Short, Medium and Long term.
Price Action: SpaceX shares were down 0.91% at $137.87 during the after-hours trading on Monday.
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